February 25, 2006
Efforts to block DP World deal continue
U.S. lawmakers questioning the deal seem unimpressed by a statement from DP World that it would "segregate" U.S. port operations it is acquiring in its takeover of P&O.
Senators Schumer, Norm Coleman (R-MN), Bob Menendez (D-NJ), Olympia Snowe (R-ME), Hillary Clinton (D-NY), Susan Collins (R-ME), Tom Coburn (R-OK), and Jack Reed (D-RI) are set to introduce emergency legislation Monday that, they say "will suspend the Dubai port deal immediately."
The bipartisan emergency bill will:
Rep. Pete King (R-NY), Chairman of the House Homeland Security Commitee, will introduce companion legislation in the House.
Meantime, House Republican leaders will meet Tuesday with Speaker Dennis Hastert (who has been critical of the deal) to plan strategy.
The deal is also facing challenges in the courts. Yesterday, they crossed the Atlantic.
Eller &: Co. on Friday petitioned Britain's High Court seeking to block the entire $6.8 billion takeover of P&O by DP World.
An Eller subsidiary in Miami has already filed suit in the U.S.
The U.K. High Court had been expected to give its approval Monday in a procedure that would normally be a formality for a transaction that has gone through all the required regulatory processes.
However, in their last-minute petition Friday, lawyers for Eller cited a number of grounds for rejection of the deal, including a "real prospect" that U.S. authorities would revoke approval.